Qthe analyst has modelled the stock of the company by using

Assignment Help Finance Basics

Reference no: EM13355331

Q. The analyst has modelled the stock of the company by using a Fama-French three-factor model. Risk-free rate is 3%, market return is 11%, return on the SMB portfolio (rSMB) is 3.9%, also return on HML portfolio (rHML) is= 5.4%. If ai = 0, bi = 1.2, ci = - 0.4, also di = 1.3, what is the stock's predicted return?

Correlation between shares A also B is= 0.50, whereas the correlation between shares A also C is -0.5. You already own share A also are considering of purchasing either share B or share C. If you wish your portfolio to have lowest possible risk, would you buy share B or C?

Would you expect share you select to affect return that you earn on your portfolio?

Go through the method of working out why C is the best option for portfolio?

Reference no: EM13355331

Questions Cloud

Q1 a force vector points at an angle of 506deg above the x : q1. a force vector points at an angle of 50.6deg above the x axis. it has a y component of 280 newtons. calculate the

Q1 a rabbit runs in the straight line with a velocity of 16 : q1. a rabbit runs in the straight line with a velocity of 1.6 ms for a period of time rests for 12 s and then runs

Q1 a cube of ice is taken from the freezer at -87degc and : q1. a cube of ice is taken from the freezer at -8.7degc and placed in a 97 g aluminium calorimeter filled with 351 g of

Q1 a 14 g bullet travelling at 247 ms is fired into a 0459 : q1. a 14 g bullet travelling at 247 ms is fired into a 0.459 kg wooden block anchored to a 100 nm spring. how far is a

Qthe analyst has modelled the stock of the company by using : q.the analyst has modelled the stock of the company by using a fama-french three-factor model. risk-free rate is 3

Qsuppose that standard deviation of returns on shares of : q.suppose that standard deviation of returns on shares of share at 2 various companies is exactly similar. does this

Q 1 given the expected market return of 120 a beta of 075 : q. 1 given the expected market return of 12.0 a beta of 0.75 for benson industries also risk-free rate of 4.0 find out

Qsuppose 2014 sales are projected to rise by 15 over 2013 : q.suppose 2014 sales are projected to rise by 15 over 2013 sales. use forecasted financial statement method to forecast

Q1 if the investment needs the outlay of 400 today also : q. 1 if the investment needs the outlay of 400 today also promises to pay 50 at t 1 350 at t 2 also 150 at t 3

User Account

All Pages